Crypto Trading 101: How to Read an Exchange Order Book

Crypto Trading 101: How to Read an Exchange Order Book

It takes two to tango in the world of crypto trading, where a dynamic relationship between buyers and sellers is always on display in something called an order book. A tool that visualizes a real-time list of outstanding orders for a particular asset, order books represent the interests of buyers and sellers, offering a window into supply and demand. But while all order books serve the same purpose, their appearance can differ slightly among exchanges. That said, they are all built with the same features and functions. Examples from Coinbase Pro, Binance, Bitfinex and Kraken are shown below: To become comfortable reading order books, it is essential to understand four main concepts: bid, ask, amount and price. This information is displayed on two sides of the order book known as the buy-side and sell-side. For the purposes of this explanation, we will be using the BTC/USD order book from one of the world’s largest cryptocurrency exchanges, Bitfinex. Price and Amount Although the two sides display opposing information, the concepts of amount (also referred to as size) and price are relevant to both. Simply put, the amount and price per order display the total units of the cryptocurrency looking to be traded and at what price each unit is valued. In the example below there is an open buy order in the amount of 20.24 at a price of $8218.50. This means the entity who opened this order would like to purchase 20.24 units of bitcoin at a price of $8,218.50 per unit. In the Bitfinex order book, you will also see the terms “count” and “total.” The count refers to how many orders are combined at this price level to create the amount, whereas the total is simply a running total of the combined amounts. The Buy Side The buy side represents all open buy orders above the last traded price. This offer from the buyer is known as the “bid.” It effectively voices the trader’s interest, stating something like, “I am bidding on X units you own at a specific price in the hopes of purchasing them.” Once the bid is matched with an appropriate sell order, the trade can be facilitated. When there is an abundance of buy orders (demand) at a specific price…

Bitcoin in Brief: BTC via SMS Patented, Brave BAT Tips for Tweets and Posts

Bitcoin in Brief: BTC via SMS Patented, Brave BAT Tips for Tweets and Posts

The Daily Financial software developer Intuit has been awarded a patent for processing BTC payments via SMS and we’ve covered the details in today’s edition of Bitcoin in Brief. Also in The Daily, Brave browser plans to enable BAT tips for tweets and Reddit posts, cryptocurrency is projected to constitute 5 percent of the portfolios of US investors next year, and in Thailand, a famous actor has been arrested for an alleged crypto investment fraud. Also read: Ledger Adds Coins, Okex Launches Coinall, Exmo Partners with Mistertango Intuit Awarded Patent for BTC Payments via SMS California-based company Intuit, a financial software developer, has been awarded a patent for processing bitcoin core (BTC) payments via text messages (SMS), according to a filing published by the US Patent and Trademark Office on August 7. The patent that outlines a system to transfer BTC funds by sending text messages on smartphones was filed back in 2014. According to its abstract: The method includes receiving, by a payment service, a payment text message comprising a payment amount and an identifier of a payee mobile device, validating the payment text message based on a payer balance of a virtual payer account maintained by the payment service for the payer […] transferring, in response to creating the virtual payee account, the payment amount from the virtual payer account to the virtual payee account […]. Despite the prolonged consideration of the patent application, Intuit has been continuously developing its crypto-cash payment solutions in the meantime. Earlier, the company announced it had reached a partnership agreement with the payment provider Veem to build a system for processing international cryptocurrency payments. Brave Browser to Enable Tips for Tweets and Posts Brave, the privacy-oriented web browser that supports opt-in ads and crypto payments between users and website publishers like Twitchers and Youtubers, is now planning to expand its service to Twitter and Reddit. The startup intends to introduce support for the two platforms in the fourth quarter of this year, according to an announcement quoted by CNET. To take advantage of the tipping system, which uses Brave’s basic attention token (BAT), users have to enable the payments in the browser. Then, if another Brave user decides that a tweet or a post is worth rewarding,…

Bitcoin in Brief: Crypto Payments via SMS, Coin Tips for Tweets and Posts

Bitcoin in Brief: Crypto Payments via SMS, Coin Tips for Tweets and Posts

The Daily Financial software developer Intuit has been awarded a patent for processing BTC payments via SMS and we’ve covered the details in today’s edition of Bitcoin in Brief. Also in The Daily, Brave browser plans to enable BAT tips for tweets and Reddit posts, cryptocurrency is projected to constitute 5 percent of the portfolios of US investors next year, and in Thailand, a famous actor has been arrested for an alleged crypto investment fraud. Also read: Ledger Adds Coins, Okex Launches Coinall, Exmo Partners with Mistertango Intuit Awarded Patent for BTC Payments via SMS California-based company Intuit, a financial software developer, has been awarded a patent for processing bitcoin core (BTC) payments via text messages (SMS), according to a filing published by the US Patent and Trademark Office on August 7. The patent that outlines a system to transfer BTC funds by sending text messages on smartphones was filed back in 2014. According to its abstract: The method includes receiving, by a payment service, a payment text message comprising a payment amount and an identifier of a payee mobile device, validating the payment text message based on a payer balance of a virtual payer account maintained by the payment service for the payer […] transferring, in response to creating the virtual payee account, the payment amount from the virtual payer account to the virtual payee account […]. Despite the prolonged consideration of the patent application, Intuit has been continuously developing its crypto-cash payment solutions in the meantime. Earlier, the company announced it had reached a partnership agreement with the payment provider Veem to build a system for processing international cryptocurrency payments. Brave Browser to Enable Tips for Tweets and Posts Brave, the privacy-oriented web browser that supports opt-in ads and crypto payments between users and website publishers like Twitchers and Youtubers, is now planning to expand its service to Twitter and Reddit. The startup intends to introduce support for the two platforms in the fourth quarter of this year, according to an announcement quoted by CNET. To take advantage of the tipping system, which uses Brave’s basic attention token (BAT), users have to enable the payments in the browser. Then, if another Brave user decides that a tweet or a post is worth rewarding,…

Japan Unveils Results of On-Site Inspections of 23 Crypto Exchanges

Japan Unveils Results of On-Site Inspections of 23 Crypto Exchanges

Regulation The Japanese financial regulator has finished the on-site inspections of 23 cryptocurrency exchanges. The agency found many problems and has released a report outlining them. The regulator will use the findings to tighten its review procedures of new crypto exchange applicants, including over 100 companies that have been waiting to be reviewed. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space Results of On-Site Inspections of 23 Exchanges Japan’s top financial regulator, the Financial Services Agency (FSA), announced Friday the results of the on-site inspections of 23 cryptocurrency exchanges operating in the country. Seven out of the 23 are fully licensed crypto exchanges; the rest are “deemed dealers,” which are exchanges that have been allowed to operate while their applications are being reviewed by the agency. The FSA started inspecting these exchanges after the hack of Coincheck in January. With the announcement, the FSA also released an interim report that outlines the problems found from the inspections and monitoring of the exchanges. Nikkei elaborated: The inspection reveals a sloppy reality that the maintenance of the internal control system has not kept up with the rapid expansion of transactions. The risk was not evaluated for each virtual currency…and it was judged that securing necessary personnel for countermeasures such as money laundering was insufficient at multiple vendors. Furthermore, the agency found that “the total assets of the exchanges rapidly expanded to more than 6 times in one year,” the news outlet conveyed. The FSA is also concerned that there are fewer than 20 executives and employees at most places, with assets under custody of “3.3 billion yen [~US$30 million] per person” on average. Going Forward The FSA will make full use of the findings from the inspections when reviewing new applicants. Since the hack of Coincheck, the agency has not approved any crypto exchanges. According to Nikkei, three companies are currently being reviewed, including Coincheck. The publication reiterated: It is expected that exchange registration that had virtually stopped after the Coincheck incident will be resumed. In the future the examination will be tightened, such as evaluating the effectiveness of the business plan…and the internal control system on-site. At present, there are over 100 companies waiting to be registered. According to Business Insider Japan, they include megabanks, major IT companies,…

Bitcoin Dominance Rate Hits 50% For First Time in 2018

Bitcoin Dominance Rate Hits 50% For First Time in 2018

Bitcoin (BTC) now makes up 50 percent of the entire cryptocurrency market capitalization. Shortly past 03:00 UTC on August 11, CoinMarketCap’s bitcoin dominance rate – an indicator that tracks the percent of the total cryptocurrency market capitalization contributed by the leading cryptocurrency – reached 50 percent for the first time since December 19th, 2017. At press time, bitcoin’s market capitalization now records $105,785,552,545, which is about $901 million more than the market capitalization of every other cryptocurrency combined. Chart via CoinMarketCap The above chart shows bitcoin’s dominance rate has been on a steady incline over the past few months, currently representing a 14 percent increase from May 1st. In the same time period the market dominance of all other cryptocurrencies have largely been on the decline. Conditions were much different the last time bitcoin’s market dominance was above 50 percent. On Dec. 19th, the average price of BTC was $17,605.81 across exchanges – an 65 percent higher price than the cryptocurrency’s value today, according to the CoinDesk Bitcoin Price Index. Image via Shutterstock The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. Join 10,000+ traders who come to us to be their eyes on the charts, providing all that’s hot and not in the crypto markets.

Iran Steps Up Plan for National Crypto After US Sanctions

Iran Steps Up Plan for National Crypto After US Sanctions

Economy & Regulation Right after Washington’s move to impose sanctions that will restrict Iran’s access to US currency, reports came out that Tehran is speeding up the project to develop a national cryptocurrency. Officials in the Islamic Republic believe the state-issued coin could help circumvent the restrictions imposed by the Trump administration. Also read: New Bill Proposes 5% Tax on Crypto Incomes in Ukraine Iran to Evade US Sanctions Using Own Crypto Faced with renewed US sanctions, Iran is accelerating the development of its national crypto as the oil-rich nation is looking for ways around the American restrictions. Despite calls from partners and signatories to the Iran nuclear deal, like the EU, Russia and China, Washington reimposed measures targeting the ability of the Islamic Republic to acquire US dollars and trade in precious metals. The United States urged allies to cut all purchases of Iranian oil and president Trump warned that the sanctions will “ratchet up to yet another level” in November. Following the news from Washington this week, media reports from Tehran suggested that the Iranian government is now serious about stepping up efforts to finalize the project for an indigenous cryptocurrency. On Wednesday, a day after the Trump administration restored the sanctions, a high ranking Iranian official revealed that President Hassan Rouhani had ordered the country’s central bank to hold a meeting with other relevant authorities to discuss the matter. They are expected to assess the progress in the development of Iran’s digital money at a time when the fiat Rial is plunging. According to Iranian English language channel Press TV, the announcement was made by the Minister of Information and Communications Technology, Mohammad-Javad Azari Jahromi, whose department will jointly chair the meeting with the Central Bank of Iran (CBI) scheduled to take place next week. Jahromi noted that the preliminary studies had been carried out already by Iran’s Post Bank, which was charged with overseeing the crypto project. The CBI, however, is still opposed to the idea of using digital currencies and considers them illegal in Iran. Nevertheless, the minister hinted that this attitude could soon change claiming that the mentality within the Iranian government is currently in favor of cryptocurrencies. Speaking to reporters, he stated: A new attitude that has been…

UK:  $2.5 Million Losses in Crypto-Related Scams Reported This Summer

UK: $2.5 Million Losses in Crypto-Related Scams Reported This Summer

British police have warned the public about fraudulent investment schemes involving cryptocurrencies, the volume of which has led to 2 million pounds ($2.55 million) worth of losses this summer, according to an announcement published August 10. In the announcement, the police cite statistics prepared by the Action Fraud national reporting center for fraud and cyber crime, which shows that in June and July victims reported losses of $2.5 million in cryptocurrency scams. The average loss totaled to roughly 10 thousand pounds ($12,700 thousand) per person. Director of Action Fraud Pauline Smith said: “It’s vital for anyone who invests or is thinking of investing in cryptocurrencies to thoroughly research the company they are choosing to invest with. The statistics show that opportunistic fraudsters are taking advantage of this market, offering investments in cryptocurrencies and using every trick in the book to defraud unsuspecting victims.” Fraudsters reportedly lure potential victims with “get rich quick” investment schemes in crypto mining and trading. When a person signs up to a fraudulent digital currency investment website, they are asked to provide personal data like credit card details or driver’s licence numbers to open a trading account. Once the victim makes an initial deposit, fraudsters persuade them to invest more to gain a greater profit. In order to fight fraudulent activity involving cryptocurrencies, the City of London Police’s Economic Crime Academy (ECA) has reportedly developed a one-day “Cryptocurrencies for Investigators” course to train officers to recognize and manage crypto in their investigations. This week, the U.K. financial watchdog, the Financial Conduct Authority (FCA), issued two warnings over crypto-related “clone” companies, which claim to be authorized by the FCA. The first firm called Fair Oaks Crypto allegedly tried to hoodwink potential victims by claiming that they represent Fair Oaks Capital Ltd. The second, Good Crypto was reportedly giving out  “false details or mix[ing] these with some correct details of the registered firm,” which in this case was London-based Arup Corporate Finance.

Volumes Surge on Turkey’s Crypto Exchanges as Lira Tanks

Volumes Surge on Turkey’s Crypto Exchanges as Lira Tanks

Trading volume on Turkey’s cryptocurrency exchanges surged Friday as the country’s fiat currency plunged to record lows on economic jitters. According to CoinMarketCap, volume at Turkish exchanges Paribu, Btcturk and Koinim jumped over the past 24 hours by more than 100 percent each. Absolute volumes are still relatively small at these exchanges, with Btcturk, the country’s largest, handling $11.6 million in trades. The Turkish lira hit an all-time low against the dollar, reflecting global market worries about President Recep Tayyip Erdoğan’s economic policies, his souring relationship with U.S. president Donald Trump and his government’s ability to repay its debts. Doing little to calm such fears, Erdogan spoke in public appearances Friday of “economic war” with the U.S. and called on Turkish citizens to exchange any dollars, euros or gold they own for the lira to prop it up, according to media reports. The ongoing turmoil has increased the appeal of bitcoin and other cryptocurrencies for some local retail investors, even though the sector has been in a bear market this year. “Every day there are new [bitcoin] exchanges coming up in Turkey,” said a local university student who for safety reasons asked to be referred to by his Twitter handle, Bit_gossip. Another crypto user, an affiliate marketing professional in Istanbul who also prefers to go by a pseudonym, Bitmov, said he has been using bitcoin to buy digital ads abroad for over three years. Now his family and friends turn to him for advice on how to buy bitcoin, he said. Bitmov told CoinDesk: “I started personally trading crypto 1.5 years ago because of the weakness of the Turkish lira, and fear of the political, and financial, status of the Turkish government. Cryptocurrency makes me feel much safer.” Pointing to hardships caused by recent economic policies, Bitmov said he no longer trusts fiat currencies. Similarly, Bunyamin Yavuz, a cardiologist in Ankara, said he no longer trusts local banks and now buys XRP, monero, lumens, among other cryptocurrencies as part of his investment portfolio. Yavuz told CoinDesk his holdings now consist of 30 percent cryptocurrencies, 20 percent U.S. dollars, and just 10 percent lira. Reflecting the growing interest, Bit_gossip has run a crypto Discord channel since 2016 that has recently grown to 11,294 Turkish-speaking members. Bitcoin purchases would be even brisker…

Japan’s Financial Watchdog Publishes Results of Its On-Site Crypto Exchange Inspections

Japan’s Financial Watchdog Publishes Results of Its On-Site Crypto Exchange Inspections

Japan’s financial watchdog, the Financial Services Agency (FSA), has published the results of its on-site inspections of cryptocurrency exchange operators, Cointelegraph Japan reports August 10. Based on its findings, the watchdog has decided to apply more rigorous oversight into new applications from exchanges hoping to receive an official operating license. Newly registered exchanges will be required to undergo on-site inspections at an early stage and the agency plans to closely examine the effectiveness of their business models. According to the agency, there are currently “hundreds” of companies awaiting its review. The FSA probe revealed that exchange operators’ maintenance of their internal control systems has failed to keep pace with the rapid growth of transaction volumes, which it partly attributed to the “renaissance” of the crypto markets in fall 2017. According to the investigations, the total digital assets of domestic exchanges surged to 792.8 billion yen ($7.1 billion), an over six-fold increase within the space of one year. Meanwhile, most exchanges’ workforces are fewer than 20 people, meaning that one employee on average was found to be managing digital assets worth 3.3 billion yen ($29.7 million). The comprehensive document identified a wide array of problems across exchanges’ business models, risk management and compliance, internal audits, and corporate governance. The agency further highlighted concerns over insufficient anti-money laundering (AML) measures among certain exchanges. Local news platform Nikkei has reported that it is likely the new registration of exchange operators — which had virtually stopped in the wake of January’s $532 mln hack of crypto exchange Coincheck — will resume following the FSA’s interim publication. The FSA has said that “substantial” ongoing review of registration procedures will be necessary, and that it will continue to give “priority to investor protection.” In May, the FSA unrolled regulatory stipulations for registered exchanges, including tough restrictions on the trading of anonymity-oriented altcoins. In July, the FSA announced it was considering changing the legal framework for the regulation of cryptocurrency exchanges, and the agency was also recently restructured in order improve its handling of fintech-related areas, including cryptocurrencies. A self-regulatory body, the Japan Virtual Currency Exchange Association (JVCEA), formed in early March in order to develop and coordinate policies in conjunction with the FSA. Last month, JVCEA announced it would be requiring…

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, TRON: Price Analysis, August 10

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, TRON: Price Analysis, August 10

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision. The market data is provided by the HitBTC exchange. Just a few days back we were discussing whether cryptocurrencies have entered a bull phase. Now, after the recent slump in prices, analysts are predicting a huge fall on Bitcoin (BTC). Bloomberg Intelligence analyst Mike McGlone believes that Bitcoin will plunge to last year’s average level of $4,000. Jeff deGraaf, head of technical research at Renaissance Macro Research has a more dire warning for the Bitcoin bulls. He said that “once the top is complete”, it may even mean “game-over” for Bitcoin. DeGraff is a highly respected voice in the technical analyst community, hence, his forecast should be kept in mind. However, it is important to note that technical analysts can quickly change their opinion according to the chart patterns. While it is beneficial to know their views, the trades should only be taken based on the current chart patterns. Additionally, every position should be protected by a stop loss to protect the capital, should the markets go opposite to our expectation. BTC/USD The bulls have defended the critical support level at $6,075.04 for the past two days. Although this is a positive sign, a sharper pullback would have given us greater confidence that the bulls are aggressively buying at these levels. As the recovery has been weak, we will have to rely on other signs to predict the next probable direction on Bitcoin. The moving averages are on the verge of completing a bearish crossover, which is a negative sign. On the other hand, the RSI is close to the oversold territory, which shows the selling has been overdone and a pullback is likely. Any pullback will face a stiff resistance at the downtrend line of the descending triangle and then at the moving averages. The virtual currency will show the first signs of bullishness once it sustains above $7,200. There is a possibility for the BTC/USD pair to remain range bound between $6,000 and $8,500. We have come to this conclusion because the bottom — around…